Garamendi Joins Speier In Effort to Ban Industry Contributions

Democratic Nominee John Garamendi joined Calif. State Sen. Jackie Speier and consumer advocate Harvey Rosenfield on the steps of the State Capitol in Sacramento March 21 to call for a new effort to ban contributions from the insurance industry in the race for insurance commissioner. Garamendi is squared off against Republican challenger Gary Mendoza in the November election.

Twice in the last two years, Speier has attempted to end one of the biggest conflicts of interest in state government. From 1994 through 2000, it was reported that almost $6 million was given by the industry to former commissioner Chuck Quackenbush. In the last two years, the industry is said to have contributed $1.5 million to candidates running for the office.

At a Thursday morning press conference, Speier announced plans for legislation of SB 1978, The Insurance Commissioner Contribution Reform Act.

If it passes, the bill would allow California to join Delaware, Georgia and Washington as states that have already banned contributions from the industry to the commissioner.

Of the 12 states that have an elected commissioner, nine have undertaken some measures to halt the flow of funds from the industry to their commissioner. Currently, Florida limits industry contributions to $100, while Montana, North Carolina, North Dakota, and Oklahoma ban corporate contributions for all elected officials. The twice-elected Kansas commissioner does not accept any industry money.

Both Louisiana and Mississippi do not in any way limit contributions from the industry, both in statute or practice.

Speier’s proposed bill is similar in intent to SB 798 (Speier) of 2001 that failed passage in Assembly Elections and Reapportionment, SB 953 (Speier) of 2000 that failed passage on the Assembly Floor, and SB 1097 (Kopp) of 1997 that also failed passage on the Senate Floor.